City Council

Council Chambers 200 West Walker Street

Agenda — 17 items

1. 1 The City Council of the City of League City, Texas, met in a work session in Council Chambers at 200 West Walker Street on the above date at 5:00 p.m.
2. 1. CALL TO ORDER AND ROLL CALL OF MEMBERS
3. 2 Mayor: Nick Long City Council Members: Andy Mann Tommy Cones Tom Crews Courtney Chadwell Justin Hicks Chad Tressler Sean Saunders City Manager: John Baumgartner Assistant City Manager: Rick Davis Assistant City Manger-CFO: Angie Steelman Interim City Attorney: Michelle Villarreal City Secretary: Diana M. Stapp Chief of Police: Cliff Woitena Executive Director of Capital Projects Ron Bavarian Executive Director of Development Services: Christopher Sims Director of Finance: Kimberly Corell Director of Human Resources/Civil Service: James Brumm Director of Parks & Cultural Services: Chien Wei Director of Public Works: Jody Hooks
4. 2. PUBLIC COMMENTS
5. 3. PRESENTATION AND DISCUSSION REGARDING THE WATER/WASTEWATER LONG RANGE FINANCIAL PLAN AND RATE ANALYSIS
6. 4 Mayor Long called the meeting to order at 5:00 p.m. and called the roll. All members of Council were present except Mr. Hicks. Mr. Mann arrived at 5:03
7. 4. ADJOURNMENT
8. 6 _______________________ NICK LONG MAYOR
9. 7 CERTIFICATE OF NOTICE
10. 7 NewGen Strategies & Solutions – presented by Chris Ekrut Business Fundamentals Revenue Sufficiency – Revenues must match or exceed expenses Reserves – Must plan for a rainy day Reinvestment – We must repair, replace and reinvest in infrastructure Key Drivers League City is rapidly growing, with an average of 1,280 new connections being added annually. Growth drives the need for capital projects The City has $468 million in planned capital projects over the next 5 years. $179 million is for the Southeast Water Purification Plant Expansion. $80 million is for the Southwest Water Reclamation Facility Expansion. CIP Funding Totals (water & wastewater): FY2025 - $58.51 million FY2026 - $145.53 million FY2027 - $49.02 million FY2028 - $29.19 million FY2029 – 185.12 million Projected Debt The City plans to issue debt annually to fund capital projects. It is assumed that issuances funding plant expansions will carry a 30-year term. For Series 2025 issue, it is assumed that half of the annual payment will be made in FY 2025. For all other issuances, it is assumed that payments start the year after each issuance. Wholesale Water The City uses Gulf Coast Water Authority for wholesale water service. There are two components to the wholesale charges: Operating – paid out of the Utility Fund Debt - paid out of the Debt Service Fund
11. 8 This is to certify that the above Notice of Meeting was posted on the bulletin board of City Hall of the City of League City, Texas, on or before the 10th day of January, 2025 prior to 12:30 p.m. as well as the City's public internet webpage, www.leaguecitytx.gov and was posted in accordance with the Texas Open Meetings Act, Chapter 551, Government Code.
12. 8 Financial Performance – Water & Wastewater Current Rates (slides) Rate Plan and Development Ensure both Water and Wastewater are self-sufficient and financially stable. Achieve rate gradualism by levelling customer impacts for FY2026 through FY2029. Larger rate increase warranted in FY2025 to fund near-term capital needs. Adjust residential water volumetric tier differentials. Establish an increasing minimum charge by meter size for the Landscape class. Establish a minimum charge for 1” commercial water users that differs from the 5/8” and 3/4" rate. Monthly Bill Impacts – 5/8” & 3/4", Residential use 6,500 gallons Water & Wastewater FY 2025 - $7.84 variance FY 2026 - $4.19 variance FY 2027 - $4.32 variance FY 2028 - $4.10 variance FY 2029 - $7.08 variance Monthly Bill Impacts – 1", Commercial use 25,000 gallons Water & Wastewater FY 2025 - $31.83 variance FY 2026 - $18.11 variance FY 2027 - $17.59 variance FY 2028 - $17.59 variance FY 2029 - $27.70 variance Monthly Bill Impacts – 2", Landscape 50,000 gallons Water FY 2025 - $51.74 variance FY 2026 - $31.34 variance FY 2027 - $30.82 variance FY 2028 - $30.81 variance FY 2029 - $32.39 variance Financial Performance – Combined – Proposed Rated (slides) Regional Bill Comparison (slide) Next Steps January 28, 2025 – present a 5-year annual rate increase ordinance to City Council February 11, 2025 – Second reading of ordinance Goal – Adopt new rates for implementation on April 1, 2025. Projects per debt issuance (slides) Top 10 Water Capital Projects Over Next 5 Years: 20 MGD Expansion of SEWPP - $179,000,000 54” Water Line Replace 42” Line on SH3 (Distribution Supply) - $43,273,069 Transmission Waterline Assessment & Rehab - $19,375,000 Waterline Upgrades & Replacement (Renewal) - $13,130,000 West Side Well, GST, Generator and BPS (Calder South) - $13,100,000 SWEPP Treatment Improvements - $12,750,000 Muldoon Parkway 16” Waterline Extension, Phase 1 - $6,440,980 Calder Road Booster Pump Station Expansion, Phase 1 - $5,617,763 24-Inch Waterline on Bay Area Blvd., Segment 3 - $4,866,647 SH3 BPS Chemical Fee Building & Storage - $3,500,000
13. 9 The City Council of the City of League City, Texas reserves the right to meet in closed session on any of the items listed above should the need arise and if applicable pursuant to authorization by Title 5, Chapter 551 of the Texas Government Code: 551.071 Consultations with Attorney, 551.072 Deliberations about Real Property, 551.073 Deliberations about Gifts and Donations, 551.074 Personnel Matters, 551.076 Deliberations about Security Devices, and 551.087 Deliberations Regarding Economic Development Negotiations.
14. 10 ________________________ DIANA M. STAPP CITY SECRETARY (SEAL) MINUTES APPROVED: January 28, 2025
15. 10 At 5:31 p.m. Mayor Long said, there being no further business this meeting is adjourned.
16. 11 _________________________________________________________________________ NOTE: In compliance with the Americans with Disabilities Act, this facility is wheelchair accessible and accessible parking spaces are available. Requests for special accommodations or interpretive services must be made at least 48 hours prior to this meeting. Please contact the City Secretary's Office at 281-554-1030 or by FAX 281-554-1020. _________________________________________________________________________
17. 12 Any invocation that may be offered during the ceremonial portion of the City Council meeting shall be the voluntary offering of a private citizen, to and for the benefit of the Council. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council and do not necessarily represent the religious beliefs or views of the Council in part or as a whole. No member of the community is required to attend or participate in the invocation and such decision will have no impact on their right to actively participate in the business of the Council.